HSBC has become the first traditional global financial institution to purchase virtual land in the metaverse.
Global banking giant HSBC has purchased a plot of virtual land in The Sandbox metaverse as part of a newly announced deal with the virtual world platform. Financial and other details of the partnership were not disclosed.
HSBC is currently the second-largest bank in Europe by assets and its partnership with The Sandbox marks the first time a global bank has made a direct investment in the metaverse.
“We believe this is the beginning of a broader adoption of Web3 and the metaverse by institutions driving brand experiences and engagement within this new ecosystem.”
COO and co-founder of The Sandbox Sebastien Borget said about the partnership.
HSBC bullish on the metaverse
HSBC said it intends to use the virtual piece of land to develop a space where it can engage with fans of sports, gaming, and e-sports on the web3.
“The metaverse is how people will experience Web3, the next generation of the Internet — using immersive technologies like augmented reality, virtual reality, and extended reality.”
HSBC’s Chief Marketing Officer Suresh Balaji said in the press release. He added that the partnership’s goal is to create new experiences that are “educational, inclusive and accessible.” The lender believes the metaverse is the best way to connect with both new and existing customers that are at the forefront of emerging platforms and technology.
“At HSBC, we see great potential to create new experiences through emerging platforms, opening up a world of opportunity for our current and future customers and for the communities we serve.
The metaverse market has been on a steady growth trajectory and some predict it to be worth more than $800 billion within the next two years, according to research by Bloomberg News.
SAND rises on partnership news
The Sandbox metaverse’s native crypto SAND spiked almost 9% Wednesday morning after the news broke and is currently up 7.78%.
Additionally, trading volume is up 163% compared to before the announcement. Roughly $1.06 billion in SAND was traded today. Meanwhile, the coin’s market cap hit a peak of $3.43 billion and currently stands at $3.34 billion.